If You’re a Retiring Baby Boomer, Here are 6 Reasons You Should Sell Now
Credit to: Leonard Steinberg
Just about 10,000 Americans retire every day. Many own a home, which is too large for their needs, and were planning to downsize or move. They may feel they should wait now that real estate markets have dipped off highs that surged between 2020 and 2022 in many areas: Why should they sell now? Here are some reasons why selling now might make sense:
1. Liquidating a home now when all markets are down - including equity markets - allows you to buy replacement investments at lower prices with a stronger potential upside....including equities.
2. Liquidating a home now allows you to earn more for your cash deposits that now produce much higher returns. Even a basic savings account delivers over 3%.....
3. Holding on to a large expensive home has carrying costs: insurance, maintenance, repairs, electricity, gas, mortgage payments, real estate tax payments. If markets recover in the next 2 years to where they were, will those gains outstrip the costs to carry this home?
4. The lower the sale price, the lower your capital gains taxes too. Many who have owned their homes for many years may have large capital gains taxes beyond the $250k or $500k exemptions.
5. In a down housing market with higher interest rates, job losses and a recession looming, first time home buyers are often more disadvantaged: the smaller homes that also appeal to retirees may be more affordable and attainable now than later when - not if - the economy bounces back with lowered interest rates.
6. The last reason to move on with plans, regardless of maximizing profits, is that..TIME IS THE LAST LUXURY! You cannot buy more time.
As agents, we are not financial advisors, but we are here to give our clients thoughts and ideas to ponder that they may not have fully considered.
Have any real estate related questions? Contact us!
T. Cody Turnquist:
-(612) 578-1093
Andrew Spilseth:
-(612) 396-2951
